Porsche Cayenne Case Study Essay

1. Why is Porsche launching the Cayenne product?a. To leverage its brand across a wide range of product categories2. What are the benefits and risks of the Cayenne launch?a. Risksi. Cayenne would join a agonistical and crowded SUV marketii. Potential for new entrants threatens sustainability of Porsches sales forecasts iii. Launching a luxury SUV was an overpriced bet for Porsche iv. SUVs were under attack in the U.S. by cultural criticsv. Potentially damage Porsche brand and change shape away loyal customersb. Benefitsi. forget diversify Porsche products for protection against potential declines in sports car market ii. Will combine traditional Porsche styling and performance with off-road driving capability and spacious interior iii. Expected to sell 20,000 units per course of studyiv. Will lead to proximo growth potential in sales, turnover, and earnings v. Open the way to future product diversification for Porsche3. Does the Cayenne launch change the overall meaning of the Porsche brand? a. Yes Suburban soccer mom connotation conflicts with Porsche cool factor b. VW responsible for major aspects of production, with only final assembly to be conducted by Porsche c. Assembly in Leipzig put into question its Made in Germany moniker4. Who are the Porsche consumers? How would you stipulate them? What do they want? a. Upper-class drivers who appreciate and desire stylish cars that are fun to drive5. Should Porsche oblige with the online brand friendship? Why or why not? a. Porsche should take the valuable information provided by the online brand community into consideration to a certain extent b. However, Porsche should not engage with online brand community because it is a home for Porscheusers, not Porsche makers, and this sense of community contributes to Porsche brand c. For example, a college administration engaging with a fraternity interferes with the sense of brotherhood)6. What can executives learn from Cayenne that could be planned to future ne w products? a. breathe closer to traditional Porsche ideals when expanding product line (greater involvement of Porsche in assembly and assembly location)